Google close to deal with EU

Google is close to settling a three-year EU competition probe with “much better” concessions to allay concerns over blocking rivals such as Microsoft from internet search results, according to sources.

A settlement would mean Google, the world’s biggest internet search engine, would escape a possible fine of as much as €3.5bn or 10% of its 2012 revenue.

Such an outcome would mirror the company’s success in the US last year where it received only a mild reprimand from the Federal Trade Commission, which said Google had not manipulated its website results following a 19-month investigation.

Google and the European Commission are close to a deal and a decision is expected shortly, a senior EU official told Reuters.

A commission spokes- man declined to comment on whether or not a deal was close. “We are at a critical moment in the investigation,” he said.

“We don’t comment on rumours and speculation,” a Google spokesman said.

The official said Google’s latest proposal, its third since competition commissioner Joaquin Almunia rejected an earlier offer in October as unacceptable, was “much better”.

It includes commitments from Google on how it will treat rivals and how it will use content from other providers in future.

The commission has said Google may have favoured its products and services in search results at the expense of competitors.

Google submitted the new offer in mid-January, in essence building on its second proposal, a second source said. In that offer, the US company said it would let rivals display their logos and web links in a prominent box, and content providers decide what material Google can use for its own services.

It would also make it easier for advertisers to move their campaigns to rival platforms.

EU regulators will not seek feedback from the 125 rivals, including Microsoft and third parties, who commented on Google’s previous proposals as they have a clear idea of their thinking after the last two market tests, the official said.

Google’s critics said they wanted the chance to vet the offer and were ready to take on the regulator if left out of the process.

“We would challenge a settlement agreed upon without a market test,” said Michael Weber of German online mapping service Hotmaps.

The critics have said it would be better for regulators not to do a deal than end up with a flawed outcome.

Reuters